Publications: Notes at the Margin

Serious Economists Matter Occasionally (December 2, 2013)

It is not likely that the MBAs and engineers who write daily, weekly, and monthly reports on global energy markets have a clue regarding the causes and implications of the widening spread between US and world crudes or the implications of Russia’s exercise of national power. Regarding the first issue, those who observe and write on oil markets, as well as those who trade in them, must recognize that a new order dominates the US market. Large independent refiners have been transformed from passive buyers into market makers. Regarding the second, given Russia's need for increased export income, it should not be surprising if the country takes steps to sustain high global oil prices. This week's report delves into both topics.